Why Model Risk Frameworks Must Evolve Now

In this interview, Stefano Biondi discusses how financial institutions are adapting their model risk frameworks to keep pace with rapid technological change and shifting regulatory demands. As models become more complex and more widely used across the business, he emphasises the importance of maintaining robust validation processes, clear documentation and effective oversight.

He also reflects on the growing need to embed model risk management within broader enterprise risk strategies, ensuring alignment between risk, technology and business teams. With innovation continuing to accelerate, Biondi highlights that flexibility, transparency and strong governance will be essential to managing model risk effectively in an increasingly dynamic environment.